Aan Company purchased machinery on January 1, 2023, for $50,000. The machinery has an estimated useful life of 10 years and a residual value of $5,000. The company uses the straight-line method for depreciation. Calculate the annual depreciation expense and the accumulated depreciation at the end of three years. Explain your steps. YanZ Corporation, a retail company, started operations on January 1, 2022, with an initial capital of $150,000. Throughout the year, the company made cash sales totalling $200,000 and credit sales of $80,000. The cost of goods sold (COGS) was 60% of total sales. Operating expenses amounted to $50,000, and the company had collected $60,000 in cash from its credit sales by year-end. Additionally, YanZ paid dividends of $15,000. Prepare an income statement and calculate the ending balance in the retained earnings account as of December 31, 2022.

Aan Company purchased machinery on January 1, 2023, for $50,000. The machinery has an estimated useful life of 10 years and a residual value of $5,000. The company uses the straight-line method for depreciation. Calculate the annual depreciation expense and the accumulated depreciation at the end of three years. Explain your steps. YanZ Corporation, a retail company, started operations on January 1, 2022, with an initial capital of $150,000. Throughout the year, the company made cash sales totalling $200,000 and credit sales of $80,000. The cost of goods sold (COGS) was 60% of total sales. Operating expenses amounted to $50,000, and the company had collected $60,000 in cash from its credit sales by year-end. Additionally, YanZ paid dividends of $15,000. Prepare an income statement and calculate the ending balance in the retained earnings account as of December 31, 2022.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...

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